Introduction

The Minister of Finance increases Non-Taxable Income through the issuance of Regulation No. 122/PMK.010/2015 on Adjustment of Non-Taxable Income (Ministerial Regulation No. 122/2015) that have been effective since 29 June 2015. The Ministerial Regulation No. 122/2015 stipulates that the amount of Non-Taxable Income is as follows[i]:

• IDR 36,000,000 for individual taxpayer
• Additional IDR 3,000,000 for married taxpayer
• Additional IDR 36,000,000 for a wife whose income is combined with its husband’s income
• Additional IDR 3,000,000 for each immediate family member or extended family member in a direct line of descendant and adopted child, which fully become its dependent, 3 person at most for each family

Although the Ministerial Regulation No. 122/2015 is effective since 29 June 2015, it stipulates that the new Non-Taxable Income is valid since 2015 fiscal year[ii]. This means that each company must calculate its Article 21 Income Tax Payable from July 2015 to December 2015 using the new Non-Taxable Income. In addition, Tax Notification period of Article 21 Income Tax from January 2015 to July 2015 that has been reported using the old Non-Taxable Income must be revised using the new Non-Taxable Income[iii].

Calculation of BPJS for Health Premium

Based on Ministerial Regulation No. 122/2015, Non-Taxable Income for a married person with one child is IDR 42,000,000 annually or IDR 3,500,000 monthly. This new Non-Taxable Income has been increased substantially if compared to the old Non-Taxable Income. Please note that according to the Minister of Finance Regulation No. 162/PMK.011/2012 which has been revoked by the Ministerial Regulation No. 122/2015, the previous Non-Taxable Income for a married person with one child was IDR 28,350,000 annually or IDR 2,362,500 monthly.

An increase on Non-Taxable Income will also automatically increase the highest amount of BPJS for Health which must be paid by both employer and employee. BPJS for Health premium must be paid together by employer who pays 4 % and employee who pays 1 % of the employee’s monthly salary. The highest limit of monthly salary for calculation of BPJS for Health premium is 2 x Non-Taxable Income of a married person with one child[iv]. Based on these calculations, the highest amount of premium which must be paid by both employer and employee are as follows:

Must be paid by Employer

(1 % x 2 x Non-Taxable Income of a married person with one child which is IDR 3,500,000) = IDR 70,000 monthly premium.

Must be paid by Employee

(4 % x 2 x Non-Taxable Income of a married person with one child which is IDR 3,500,000) = IDR 280,000 monthly premium.

Group of Inpatients in BPJS for Health

 The inpatients are grouped into 3 classes in BPJS for Health which are Class I, Class II, and Class III. Participant of BPJS for Health who does not receive salary and participant who does not work but pay premium can enjoy the service of Class III treatment room. The service of Class II treatment room can be enjoyed by Participant of BPJS for Health who works and receives a maximum salary of 1,5 x Non-Taxable Income for married taxpayer with one child. Lastly, the service of Class I treatment room can be enjoyed by Participant of BPJS for Health who works and receives salary between 1,5 x and 2 x Non-Taxable Income for married taxpayer with one child[v].

Since the amount of Non-Taxable Income has been increased by Ministerial Regulation No. 122/2015, the group of inpatients in BPJS for Health who can enjoy the services of Class I and Class II treatment room are also changed. Those group of BPJS for Health participants are as follows:

Participant that can enjoy the service of Class II treatment room

(Participant with maximum monthly salary of 1,5 x Non-Taxable Income for married taxpayer with one child which is IDR 3,500,000) = participant with maximum monthly salary of IDR 5,250,000.

Participant that can enjoy the service of Class I treatment room

(Participant with monthly salary between 1,5 x and 2 x Non-Taxable Income for married taxpayer with one child which is IDR 3,500,000) = Participant with monthly salary of between IDR 5,250,000 and IDR 7,000,000.

For further information on new Non-Taxable Income, calculation of BPJS for Health and determination of its group of inpatients, please kindly contact us at E: bpl@smartlegal.id  H: +62821-1234-1235

[i] Article 1 of Ministerial Regulation No. 122/2015

[ii] Article 3 of Ministerial Regulation No. 122/2015

[iii] Please see, Directorate of Tax Press Release,Mulai 1 Januari 2015, Penghasilan Tidak Kena Pajak Wajib Pajak Orang Pribadi 36 Juta Setahun, accessed at http://www.pajak.go.id/sites/default/files/Siaran%20Pers%20PTKP.pdf

[iv]Article 16 C and Article 16 D of Presidential Regulation No. 111 of 2013

[v]Article 23 of Presidential Regulation No. 12 of 2013 on Health Security as amended by Presidential Regulation No. 111 of 2013